the african development banks contribution to aid for trade (aft) kennedy mbekeani nepad, regional...
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The African Development Bank’s Contribution to Aid for Trade (AfT)
Kennedy Mbekeani
NEPAD, Regional Integration and Trade Department
3rd Meeting of Trade Ministers of Landlocked Countries
Swaziland, October 21-22, 2009
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African Development Bank Group 2
1. Specific Issues for LLDCs
2. The AfDB’s Contribution to AfT• Financial and Technical Assistance:
o Operational Activitieso Capacity Buildingo Knowledge Products
• Institutional Support to AfT Processo Monitoring and Evaluationo Advisory Groups
3. The Way Forward
Outline
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African Development Bank Group 3
• Challenges– Infrastructure
RoadsRailMaritime
– Transit and Trade Facilitation
Specific Issues for LLDCs
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African Development Bank Group 4
Infrastructure Missing Links Road Network
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African Development Bank Group 5
African Ports
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African Development Bank Group 6
Solutions
• Potential Solutions• Regional approach to deal with cross-border constraints
Road and rail networkPort infrastructureRationalization of the RECs
• Harmonization of policies
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African Development Bank Group 7
The AfDB’s Contribution to AfT
AfDB’s Contribution to AfT
Institutional Support to AfT ProcessFinancial and Technical Assistance
Operational
Activities
Capacity
Building
Monitoring
and
Evaluation
Advisory
Groups
Knowledge
Products
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African Development Bank Group 8
Financial and Technical Assistance:Operational Activities
• Infrastructure accounts for over 75% of the AfDB’s activities.
- In 2008, the AfDB invested nearly US$ 2.2. billion in infrastructure:
45.4% on transport
37.8% on power supply
16.8% on other infrastructure
- Multinational infrastructure also supports regional integration.
• Investments in infrastructure have been scaled up.
- The AfDB has supported projects such as the North-South Corridor, as well as projects within corridors.
North-South Corridor: US$ 600 million for 2009-2012 to support activities in the corridor.
Nacala Corridor US$181 million.
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African Development Bank Group 9
Financial and Technical Assistance:Capacity Building and Knowledge Products
• Capacity Building
Training of trade policy officials, especially through the African Development Institute.
Support to trade facilitation programs to increase cross-border trade and regional integration.
• Productive Capacity building
- Agriculture Sector: 2006 in US$336 million; 2007 US$230 million
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African Development Bank Group 10
Financial and Technical Assistance:Capacity Building and Knowledge Products
• Trade Development
- Trade Finance Initiative: Provision of emergency funds to support trade:
US$ 500 million in the form of lines of credit to African financial institutional to support trade finance operations.
US$ 500 million in the Global Trade Liquidity Programme, which will be jointly implemented with the IFC and other DFIs.
• Knowledge Products
The AfDB conducts studies and reports on markets and trade in Africa (i.e. African Competitiveness Report).
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African Development Bank Group 11
Institutional Support to AfT Process
• Monitoring and evaluation
– Monitor and report AfDB’s financial commitments.
Finalized the OECD donor questionnaire
Assisted member countries in completing the OECD questionnaire
– Participate and support national and regional AfT reviews
First regional review was held in Tanzania in 2007.
Eastern and Southern Africa sub-regional review was held in Lusaka in April 2009.
Regional reviews are planned for West, Central, and North Africa
– Participate in the AfT Global Review conducted by the WTO
• Advisory Groups
– WTO AfT Advisory Group
– Africa AfT Working Group
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African Development Bank Group 12
The Way Forward
• The AfDB recognizes the importance of Aid for Trade in support of the trade liberalization agenda and its capacity to foster economic growth.
• The AfDB is committed to playing a leadership role in the implementation of the AfT in Africa by:
– Addressing soft and hard infrastructure constraints through operational activities;
– Assisting in institutional capacity building;
– Providing knowledge;
– Enhancing the monitoring and evaluation agenda to show the impact of AfT;
– Sharing lessons with other donors, member countries and regional economic communities.